Reuters: Trump's return to the White House marks the beginning of a new era of volatile markets

Reuters writes that Trump's inauguration could be the beginning of a more volatile period for markets. US President-elect Donald Trump on January 20 and wrote: “Trump’s proposed tariffs could exacerbate inflation concerns. As a result, there will be pressure on bond and stock markets.

Jan 16, 2025 - 12:41
Reuters: Trump's return to the White House marks the beginning of a new era of volatile markets

Reuters writes that Trump's inauguration could be the beginning of a more volatile period for markets. US President-elect Donald Trump on January 20 and wrote: “Trump’s proposed tariffs could exacerbate inflation concerns. As a result, there will be pressure on bond and stock markets.

On the other hand, efforts to tighten immigration controls could also have an impact on these markets. Steps to ease regulations are likely to boost asset prices, including cryptocurrencies and bank stocks.” Jeff Mollenkamp, ​​manager of an American investment management company, said: “Markets are very sensitive to Trump’s speech. Right now, everyone is trying to analyze every word and nuance uttered by Trump or his top allies.”

Reuters writes that Trump's policy goals, including tax cuts, reduced regulations and announcements of increased tariffs on imported goods, have already affected prices. Doug Peta, chief strategist at BCA Research, says: "Financial markets will react to any changes that the new administration implements that differ from what was previously announced."

Analysts note that as a result of statements by Donald Trump, who is preparing to take office as the 47th president of the United States, about a new trade war with Canada, Mexico and China, the country has become a destabilizing factor that can plunge a foreign friend or foe into a crisis in an instant. Trump has promised to impose high tariffs on goods imported from China, Canada and Mexico. He said these countries must do more to prevent illegal immigration and the flow of illegal drugs like fentanyl into the United States.

Trump’s surprise threat to impose 25% tariffs on Canadian and Mexican goods and his announcement last month to raise existing tariffs on Chinese goods by 10% are signs that Trump is intent on showing his power as quickly as possible. The newly elected president of the United States is also preparing to tighten immigration policy and deport illegal immigrants. He announced this during the election campaign. Implementing Trump’s promise could cause financial damage not only to the American people, but also to the country’s economy.

Trump has also promised to end the nearly three-year war between Russia and Ukraine and put pressure on NATO allies, which spend less than 2% of their GDP on defense. He said that otherwise, these countries would be left without American aid in the event of an attack.